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###### Securities and Exchange Commission

          - [SEC File No. 270-441, OMB Control No. 3235-0497]

*Upon Written Request, Copies Available From:*                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736                

                    Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501*et seq.*) (“PRA”), the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget (“OMB”) a request for approval of extension of the previously approved collection of information provided for in Rule 15c3-4 (17 CFR 240.15c3-4) (the “Rule”) under the Securities Exchange Act of 1934 (15 U.S.C. 78a*et seq.*).                

Rule 15c3-4 requires certain broker-dealers that are registered with the Commission as OTC derivatives dealers, or who compute their net capital charges under Appendix E to Rule 15c3-1 (17 CFR 240.15c3-1) (“ANC firms”), to establish, document, and maintain a system of internal risk management controls. In addition, security-based swap dealers (“SBSDs”) must comply with Rule 15c3-4 as if they were OTC derivatives dealers. The Rule sets forth the basic elements for an OTC derivatives dealer, an ANC firm, or an SBSD to consider and include when establishing, documenting, and reviewing its internal risk management control system, which is designed to, among other things, ensure the integrity of an OTC derivatives dealer's, an ANC firm's or an SBSD's risk measurement, monitoring, and management process, to clarify accountability at the appropriate organizational level, and to define the permitted scope of the firm's activities and level of risk. The Rule also requires that management of an OTC derivatives dealer, an ANC firm, or an SBSD must periodically review, in accordance with written procedures, the firm's business activities for consistency with its risk management guidelines.

                    The staff estimates that the average amount of time a new firm subject to Rule 15c3-4 will spend establishing and documenting its risk management control system is approximately 2,000 hours (666.666667 hours per year when annualized over three years) and that, on average, an existing firm subject to Rule 15c3-4 will spend approximately 200 hours each year to maintain (                    *e.g.,*                     reviewing and updating) its risk management control system. Currently, seventeen firms are required to comply with Rule 15c3-4. The staff estimates that approximately six new additional firms may become subject to the requirements of Rule 15c3-4 within the next three years. Thus, the estimated annual burden would be 3,400 hours for the seventeen existing firms currently required to comply with Rule 15c3-4 to maintain their risk management control                           ( print page 104253)                        systems,[1]                                          4,000 hours for the six new firms to establish and document their risk management control systems,[2]                                          and 1,200 hours for the six new firms to maintain their risk management control systems.[3]                                          Accordingly, the staff estimates the total annual burden associated with Rule 15c3-4 for the 23 respondents (seventeen existing respondents and six new respondents) will be approximately 8,600 hours per year.                

The records required to be made pursuant to the Rule and the results of the periodic reviews conducted under paragraph (d) of Rule 15c3-4 must be preserved under Rule 17a-4 of the Exchange Act (17 CFR 240.17a-4) for a period of not less than three years, the first two years in an easily accessible place. The Commission will not generally publish or make available to any person notices or reports received pursuant to the Rule. The statutory basis for the Commission's refusal to disclose such information to the public is the exemption contained in section (b)(4) of the Freedom of Information Act (5 U.S.C. 552), which essentially provides that the requirement of public dissemination does not apply to commercial or financial information which is privileged or confidential.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.

*Public Comment Instructions:*                     The 30-day public comment period for this information collection request closes at the end of the day on January 21, 2025. The public may view the full information request and submit comments at                     *https://www.reginfo.gov/​public/​do/​PRAViewICR?​ref_​nbr=​202409-3235-023*                     or email comments to                     *MBX.OMB.OIRA.SEC_desk_officer@omb.eop.gov.*

Dated: December 16, 2024.

Sherry R. Haywood,

Assistant Secretary.

# Footnotes

1.                             (200 hours × 17 firms) = 3,400.                    
        Back to Citation      

2.                             ((2,000 hours/3 years) × 6 firms) = 4,000.                    
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3.                             (200 hours × 6 firms) = 1,200.                    
        Back to Citation      

[FR Doc. 2024-30367 Filed 12-19-24; 8:45 am]

BILLING CODE 8011-01-P